Slow car sales growth in March, Maruti posts record sales in current fiscal

New Delhi: Reflecting the slow recovery in Indian automobile market, major car makers Maruti Suzuki and Hyundai saw modest growth in March, while others like Ford and Mahindra posted decline in sales during the month.

The company, however, posted its highest ever sales in a fiscal in 2014-15 at 12,92,415 units, up 11.9 percent, from 11,55,041 units in 2013-14. The previous high was in 2010-11, when the company had sold 12,71,005 units.

"When the industry grew by around 4 per cent, we grew by 11 percent in FY15. While new models have played a significant role in the challenging environment but our efforts to expand our network both in rural and urban areas have paid off," Maruti Suzuki India Executive Director Marketing & Sales RS Kalsi said.

Rival Hyundai Motor India (HMIL) sold 39,525 units last month compared with 35,003 units in March 2014, up 12.9 percent.

Stating that the market sentiments were weak, HMIL Senior Vice-President (Sales and Marketing) Rakesh Srivastava said: "The 2015 outlook seems challenging as there is low traction with weak delivery on macro-economic parameters and low consumer sentiments."

Honda Cars India Ltd (HCIL), however, had a good run in March registering its highest ever monthly domestic sales of 22,696 units, up 23 percent as compared to 18,426 units in the same month last year.

The company also posted its highest ever annual domestic sales of 1,89,062 units during FY 2014–15 recording 41 percent growth over last financial year.

"The fiscal 2014-2015 has been extremely fruitful for HCIL. We are thankful to our customers for the great response we have achieved for Mobilio launched in July last year and their continued interest for other models," HCIL Senior Vice President – Marketing Jnaneswar Sen said. Utility vehicle major Mahindra & Mahindra saw its domestic sales declining by 15 percent to 41,193 units last month as against 48,490 units a year earlier.

Likewise, Ford India's domestic sales were down 17.35 percent at 5,253 units last month from 6,356 units a year ago.

Commenting on the sales performance, Ford India Executive Director Marketing, Sales and Service Anurag Mehrotra said, "With the economic recovery being slower than anticipated and a high interest rate and inflation environment, customers continue to defer their discretionary spends."

General Motors India reported 35.5 percent decline in sales at 4,257 units in March as against 6,601 units in the same month last year.

Commenting on the performance, General Motors India Vice President P Balendran said:

"Despite the marginal reductions in repo rates earlier this year, the green shoots are still not visible in the economy as we haven't really seen the banks passing on the reductions entirely to consumers."

This, coupled with the economic slowdown, continues to hold the industry performance in the red and a possible turnaround is still not expected in the coming months, he added.

In the two-wheeler segment, market leader Hero MotoCorp posted 1.47 percent growth in sales at 5,31,750 units in March as against 5,24,028 units in the same month last year.For the financial year ended March 31, 2015, the company sold a record 66,31,826 units, up 6.2 percent from 62,45,960 units sold in 2013-14 fiscal.

Honda Motorcycle & Scooter India (HMSI) saw its sales rising by 1.81 percent at 3,99,178 units in March as against 3,92,060 units in the corresponding month last year.

Chennai-based TVS Motor Co said total two-wheeler sales for the month grew by 6 percent to 2,00,238 units as against 1,88,822 units in March 2014.